Chapter 1

CHAPTER
ONE
A Golden Opportunity
You have wrapped up the sale, the application was sent to the home office, and now
a contract is on your desk. The next step is to see that the buyer gets this piece of
paper so that you can continue selling and… but stop! Let’s not treat this phase of
your operation so lightly. You have a golden opportunity!
The policy reads “A Buyer, Policyowner,” but you now have the opportunity
to make your records read “A. Buyer, Client.” There is a world of difference, and
you are the one who will make that difference.
Like most of us, you probably have a regular dentist, doctor, market,
cleaners, garage, etc. Why do you do business with these particular people? You can
get the same product or service from someone else down the street and for about the
same money. You go back again and again because you are a client – not just a
buyer. You are satisfied that you are getting your money’s worth, you have
confidence in these people – and besides, you like doing business with them.
The person who purchased a life insurance policy because of your

persuasiveness has already expressed some confidence in you. Whether that
confidence will be maintained is up to you. One of the best places to start increasing
this confidence-and building your clientele – is in delivering the policy.
This is the critical point at which all of the fine work on the approach,
presentation, and close can come to naught and the potential renewals can be tossed
out the window – unless the delivery technique is right.
LIMRA research in persistency reveals that of all policies that lapse within
the first two years, 31 percent terminate on the first premium due date after the
sale, 50 percent terminate in six months or less, and 82 percent terminate in one
year or less.
Another LIMRA study attempted to determine what factors were different in
the groups of lapsers versus non lapsers. The lapsers reported that they had
received less personal attention and service and over half of them considered lapsing
their policies immediately or soon after the sale. A number of studies have clearly
indicated that the persistency of the policy is largely determined at the time of sale –
therefore, the delivery interview may be the agent’s last chance to make certain that
the policy will persist. Don’t let this golden opportunity pass unrecognized.
Thus, the agent who proceeds on the thesis that the work is all finished when
the prospect has signed the application is seriously in error. The fact is that one
more vital step remains. It is the step of making the policy stay in force. Sales are
locked tight by means of “post selling” techniques. It is this final step in the sales
process that is outlined in this book.
An analysis of the methods of successful producers shows that delivering the

policy presents an opportunity to accomplish at least four worthwhile purposes:
1. Opportunity to Resell the Need
But is this really necessary? After all, the sale was closed. But several days or
weeks have elapsed, and the prospect has had time to think it over. Those buying
fears had been momentarily overcome but now the fears come winging back.
Inwardly, the prospect asks- “Did I make a mistake? Could I have done better
elsewhere? In this really what I need? Wasn’t I overloaded already?”
From the studies mentioned previously, it seems obvious that the vast
majority of people who lapse their policies during the first year of ownership were
probably not sold on “what and why they bought” – which is the first mission of the
delivery call.
Thus, many agents pay particular attention to their delivery of the policy
because they know that they are highly paid for such efforts in improved
persistency. They are, in effect, taking out “insurance” protecting their deferred
first-year and renewal commissions. These are the vital commissions. They are the
foundation of a successful career in the life insurance business.
2. Opportunity to Get the policyowner Thinking About the Next Purchase

The time to start selling the next purchase is not at the next age change, not
next year, but on the delivery call. The procedure for accomplishing this objective
will be discussed in some detail later. However, agents using this technique are
amazed at the receptiveness of a new policyowner to a discussion, at the time that
the policy is delivered, of the future purchase of additional insurance. This principle
is also evidenced by the success that many agents have in placing extra policies.
3. Opportunity to Get Prospects
It is generally agreed that one of the best times to get new prospects is when
the policy is delivered. If you have done a good job of selling the need and explaining
the policy, your new policyowner should be quite enthusiastic about recommending
you to friends and acquaintances.
A recent LIMRA-LUTC study shows that over two thirds of household heads
said that they have never been asked to give a referred lead. Once again we see the
failure to take advantages of the opportunities present on delivery calls.
4. Opportunity to Build Prestige for Yourself and for Your Company

Look at those people whom you consider to be established, successful
insurance agents. You will find that they have an “extra special” relationship with
their policyowners. This respect and prestige was earned – it wasn’t given to them.
What is this valuable intangible prestige? One explanation is that “building

prestige is the process of getting ourselves believed in and accepted.” It has also
been defined as “the thing that takes you out of the ranks of ‘just another life
insurance agent’ and makes you a trusted friend, a financial counselor, the person
whose advice is listened to with respect.”
You build prestige and confidence by giving good service and demonstrating
to your clients that you “know your business” –that you are worthy of their trust.
An effective policy delivery will certainly take you out of the ranks of “just
another life insurance agent.” You have one of the best opportunities to demonstrate
your knowledge of life insurance by explaining, in simple terms, the policy
provisions and the various needs that a new policy answers.

If you carefully study these four objectives or opportunities of the delivery

call, you will find the important principle on which this book is based. An agent,
who recognizes, accepts, and builds a system around this principle is well on the way
to success. The principle is – “Behind every sale is a market more valuable than the
sale itself.”
Capitalizing on this principle is not easy. Many factors are involved.

However, mastering the four “opportunities” already discussed is the starting point.

Chapter 1

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Chapter 1

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CHAPTER

The person who purchased a life insurance policy because of your

An analysis of the methods of successful producers shows that delivering the

2. Opportunity to Get the policyowner Thinking About the Next Purchase

4. Opportunity to Build Prestige for Yourself and for Your Company

What is this valuable intangible prestige? One explanation is that “building

If you carefully study these four objectives or opportunities of the delivery

Capitalizing on this principle is not easy. Many factors are involved.

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